Quizlet

Flashcards: intro business ch. 5

Instructions

  1. Print this webpage. If you can, set your printer to Grayscale for faster printing.
  2. Fold each page down the middle along the solid vertical line.
  3. Cut along the dotted horizontal lines.
  4. Optional: Use tape, glue, or staples to hold the two sides of each flashcard together.

This will print 5 pages (5 terms/page). This box will be automatically hidden when printing. Return to Set Page

acquisitionone company's purchase of the property and obligations of another company
conglomerate mergerjoining of firms in completly unrelated industries
conventional corporationa state charted legal entity with authority to act and have liability separte from its owners
cooperativea business owned and controlled by the people who use it-- producers, consumers, or workeres with similar needs who pool their resources for mutual gain
corporationa legal entity with authority to act and have liabilty separate from its owners
franchisethe right to use a specific business's name and sell its products or services in an area
franchise agreementan arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in the area
franchiseea person who buys a franchise
franchisora company that developes a product concept and sells others the rights to make and sell the products
general partneran owner (partner) who has unlimited liability and is active in managing the firm
general partnershipa partnership in which all owners share in operating the business and in assuming liability for the business's debts
horizontal mergerthe joining of firms in completly unrelated industries
leveraged buyout (LBO)an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing
limited liabilitythe responsibility of a business's owners for losses only up to the amount they invest; limited partnership and shareholders have limited liablity
limited liability company (LLC)company similar to an S corp. but without the special eligibility requirement
limited liability partnership (LLP)partnership that limits partners risk of losing their personal assets to only their acts and omissions of people under their supervision
limited partneran owner who invests money in the business but does not have any management responsibiility or liability for losses beyond the investment
limited partnershipa partnership with one or more general partners and one or more limited partners
master limited partnership (MLP)a partnership that looks much like a corporation (traded on stock exchange) but is taxed like a partnership and thus avoids the corporate income tax
mergerresult of two firms forming one company
partnershipa legal form of business with two or more owners
S corporationa unique government creation that looks like a corporation but is taxed like like sole proprietorships and partnerships
sole proprietorshipa business that is owned, and usually managed by one person
unlimited liabilitythe responsibility of business owners for all of the debts of the business
vertical mergerthe joining of two companies involved in different stages of related business